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Congress Threatening to Defund Operation Choke Point

Today Idaho Republican Senator Mike Crapo, a
member of the Senate Budget Committee, will offer an amendment to the budget
bill demanding that Operation Choke Point be defunded.

It’s a move designed not only to put more
pressure on Operation Choke Point, which continues to harass and starve
legitimate businesses that the Obama administration considers high risk and
politically incorrect (i.e., gun and ammunition dealers, tobacconists, porn
shops, etc.) but also to smoke out the positions of those on the committee
about the program.

Previously there have been efforts to abort
the program, with little success. For example, in January Representative Blaine
Luetkemeyer (R-Mo.) met with the heads of the FDIC who agreed to soften their
approach. Instead of using the mandate from the Department of Justice to shut
off funding for these undesirable business (without proofs they were breaking
any law or violating any regulations) using thuggish tactics such as
threatening banks with increased scrutiny, investigations, and possible
subpoenas, the FDIC instead “recommended” that enforcement people show cause as
to why particular businesses were being targeted instead of the shotgun
approach aimed at all businesses on Obama’s hit list.

The FDIC also removed from its website the
notorious and now infamous list of 20 industries deemed “disreputable” and thus
ineligible for continued banking services and loans.

Despite claims that this was a victory for
the little guy, that these slight surface modifications “effectively end[ed]
Operation Choke Point” as reported by the
Washington Times, a visit to the Las Vegas 2015 Shot Show, the
world’s largest gun exhibition, by Kelsey Harkness of The Daily Signal put the
lie to such claims.

She interviewed numerous participants,
including Patrick Williams, owner of the SBR Tactical gun store in Corpus Christi, Texas, who told her that he was booted from Square,
PayPal, and Intuit simply because he was an Obama target. After several such
interviews, Harkness concluded that “it appears that little — if anything — has
changed.”

It’s not just gun shops that are being
targeted, although some observers think they are the main one. Brennan Appel,
the owner of a tobacco shop in Charlotte, N.C., recorded a conversation he had with Alex Bacon, one
of Appel’s payment processers after learning that they had closed his account.
Said Bacon:

[Bank regulators]
are taking aim at industries like yours and others to eliminate you from
business by choking you off from payment processing….

Operation Choke Point, first revealed by the
Wall Street Journal in August
2013, has been secretly pressuring banks and other lenders to terminate
financial relationships with customers in those businesses ruled unseemly by
the Obama administration. Back in 2012, Bank of America ended abruptly its
12-year relationship with McMillan Group International, a gun maker in Phoenix, and with American Spirit Arms located in Scottsdale. As Joe Sirochman, American Spirit’s owner, said:

At first
[Operation Choke Point targeted] the bigger guys — gun parts manufacturers or
high-profile retailers. Now the smaller mom-and-pop shops are being choked
out….

They need cash
[and credit lines] to buy inventory. Freezing their [accounts] will put them
out of business.

Kelly
McMillan, spokesman for the McMillan Group, was blunt:

This is an attempt
by the federal government to keep people from buying guns and a way for them to
combat the Second Amendment rights we have.

It’s a covert way
for them to control our right to manufacture guns and individuals to buy guns.

Polite requests by congressmen and senators
to cease and desist have been ignored by the ideologues infesting the
Department of Justice, and so stronger measures will be required to end the
program. Back in October, Senator Crapo, along with five other senators, wrote
to Attorney General Eric Holder expressing their “concerns” that the DOJ had
stepped out of bounds, had exceeded its congressional authority, and had
created a “list [that] has been used as a pretext by the DOJ to limit essential
banking services for industries out of favor by this Administration.”

Please, wrote Crapo and his supporters,
“cease seeking to use subpoenas and legal actions to unfairly impose liability
on parties not involved in fraud [which] put out of business merchants engaged
in legal and legitimate commerce that DOJ disfavors.”

Oh, and by the way, wrote Crapo to Holder,
“we request that you provide us with the following information,” including
steps Holder would be taking to rein in the program, and “respectfully
request[ing] all responsive information be provided to us by November 2, 2014.”

That date has long passed without response
from Holder or the DOJ.

That’s why Crapo has upped the ante. He’s
dealing with an agency on a mission with little or no regard to constitutional
limitations or politely expressed concerns from senators. As Crapo said:

Operation Choke
Point has morphed into an attempt to shut down entire industries of law-abiding
and legitimate merchants….

The Department of
Justice must not politicize its enforcement policies and we must not let
Operation Chokw Point become an end run around the Second Amendment.

Within days Crapo will learn if he has
enough support to bring his bill to the floor of the Senate, or whether the
program will continue harassing law-abiding business owners to promote the
Obama administration’s anti-gun agenda through administrative agency fiat.

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